Hindenburg Research New Report: Due to this report, Block Share closed down by 15%.
Hindenburg Research released a report on Thursday, in which it has made serious allegations against Block Inc.
Hindenburg has accused Block in its report (Hindenburg Research Report) that the company has misled investors.
Hindenburg says that Jack Dorsey's payment company Block helped those who took advantage of government schemes by forgery during Kovid.
After the latest Hindenburg report, there has been a huge decline in the wealth of Jack Dorsey, the co-founder of 'Block Inc.'.
After the arrival of this report, Jack Dorsey's wealth got cleared by $ 526 million in just one day.
This is the biggest loss for Dorsey in a single day since May last year.
According to the Bloomberg Billionaires Index, after an 11% decline in his wealth, his total net worth is now $4.4 billion.
Hindenburg released a report on Thursday, in which he made serious allegations against Block Inc.
Here we are going to tell you in detail how Hindenburg has targeted billionaire businessman Jack Dorsey.
Allegations of Hindenburg Research
The company's Cash app allowed multiple people to access government subsidies in a single account.
The block inflated the users metrics, that is, the number of users was greatly exaggerated.
Block has clearly hidden this information about how many valid users are there on its cash app.
The company also filled the metrics of active users with fake accounts.
Cash app was used by a large number of people during the epidemic.
The company increased its profits by ignoring some important banking regulations.
Block shares fell by 22%
The company denied Hindenburg Research's allegations and said it was exploring legal action against the short-sellers.
Due to this report, Block Share closed down by 15%, however, this share was broken by 22% in intraday.
Large chunk of Dorsey's assets in 'block'
Dorsey, who is also the co-founder of Twitter, has most of his assets (Jack Dorsey Net Worth) engaged in the block.
The Bloomberg Wealth Index estimates that his stake in the firm is worth $3 billion, while his stake in Twitter is just $388 million.
Billionaire businessman on target of Hindenburg Research
However, this is not the first time that Nathan Anderson's Hindenburg has chosen Billionaires as its victims and directly targeted their wealth.
Earlier this year, India's Gautam Adani and his business empire were also attacked, causing a decline in the shares of his companies and loss of several million dollars in his wealth.
Adani, who was once the second richest person in the world, is now ranked 21st on Bloomberg's index with a net worth of $60.1 billion.
Hindenburg also targeted electric car maker Nikola Corp in September 2020.
Nikola's stock subsequently plummeted and an investigation led to a fraud conviction in October against its founder, Trevor Milton.
(This news has not been edited by NDTV team. It has been published from BQ Prime.)